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Trump announced that Taiwanese microchip giant TSMC will invest $100 billion in manufacturing in the U.S. What does this mean for the tech industry?

Chip giant Taiwan Semiconductor Manufacturing Company plans to invest at least $100 billion in expanding its manufacturing operations in the United States, President Donald Trump said Monday at the White House alongside the company’s CEO, C.C. Wei, Commerce Secretary Howard Lutnick, and White House chief of staff for artificial intelligence and cryptocurrencies David Sachs.

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Trump announced that Taiwanese microchip giant TSMC will invest $100 billion in manufacturing in the U.S. What does this mean for the tech industry?

Chip giant Taiwan Semiconductor Manufacturing Company plans to invest at least $100 billion in expanding its manufacturing operations in the United States, President Donald Trump said Monday at the White House alongside the company’s CEO, C.C. Wei, Commerce Secretary Howard Lutnick, and White House chief of staff for artificial intelligence and cryptocurrencies David Sachs.

This statement came amid Trump’s broader efforts to encourage investment in American manufacturing, CNN writes .

Trump said the investment would help build two additional state-of-the-art chip factories in Arizona — in addition to the company’s three existing plants already in operation — and is expected to create tens of thousands of jobs. Trump said Monday’s announcement brings TSMC’s investment in the U.S. to about $165 billion.

«This is a huge move by the most powerful company in the world. It’s a matter of economic security, it’s also a matter of national security for us,» Trump said, adding that it would help TSMC diversify its chip production in Taiwan.

TSMC is the world’s largest semiconductor maker. Its chips are used in countless technology products, from iPhones and artificial intelligence systems to cars and medical devices. The announcement comes as the United States seeks to gain a foothold in the global chip industry and overtake China in the race to create artificial intelligence.

Trump said that investments in TSMC and «a few others that we’re making» could put the U.S. in 40% of the global chip manufacturing market, although achieving such an ambitious goal would almost certainly take years.

«We are going to produce a lot of chips to support the advancement of AI and to support the advancement of smartphones,» Wei said during an event on Monday. Wei also thanked TSMC customers such as Apple, Nvidia, AMD and Qualcomm.

TSMC is just one of the latest technology companies to promise to invest hundreds of billions of dollars in the United States.

Last week, Apple said it would invest $500 billion over the next four years to expand manufacturing, production and projects across the U.S. The announcement appeared to be aimed at helping the company avoid new tariffs on goods imported from China, although some investment efforts are likely already underway.

In January, Oracle, OpenAI, and SoftBank also announced that they would join forces to create a new company called Stargate to develop artificial intelligence infrastructure in the United States. Together, the companies plan to invest $500 billion in the project over the coming years.

TSMC initially announced a $12 billion investment to build a state-of-the-art semiconductor manufacturing plant in Arizona in 2020 amid concerns from the first Trump administration that America’s reliance on chipmakers in Asia had become a national security threat.

But TSMC’s efforts in the U.S. have received a significant boost under President Joe Biden, thanks to his CHIPS and Science Act, which helped fund investment in U.S. microchip manufacturing. During Biden’s term, the company said it would build two more plants in Arizona and increase its investment in the state to $65 billion, though at least one of those new facilities has faced delays.

New presidents and presidents-elect have often made joint statements with companies about massive American investment to promote American manufacturing. But their track record of success is mixed.

In 2017, Trump and Foxconn announced plans to build a $10 billion electronics factory in Wisconsin that was expected to create 13,000 jobs. But the company ultimately scrapped most of its plans for the facility and the high-tech products it was supposed to produce. In 2021, the company said it would invest just $672 million in a revised deal that would create fewer than 1,500 jobs.

However, Foxconn said it had invested $1 billion in the state and still has a large data server manufacturing site that employs more than 1,000 workers. But the facility Trump announced was a Microsoft data center that aims to train workers and manufacturers on how to best use artificial intelligence.

Member of the expert team at the Ministry of Digital Affairs: "Why not offer the US the construction of microchip factories in Ukraine as part of the agreement on raw materials? Trump loves such ideas"
Member of the expert team at the Ministry of Digital Affairs: «Why not offer the US the construction of microchip factories in Ukraine as part of the agreement on raw materials? Trump loves such ideas»
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Member of the expert team at the Ministry of Digital Affairs: «Why not offer the US the construction of microchip factories in Ukraine as part of the agreement on raw materials? Trump loves such ideas»
“Usually, states subsidize such projects by about 30%.” dev.ua received more information about domestic chip production, and also learned the opinion of the tech business about this initiative
«Usually, states subsidize such projects by about 30%.» dev.ua received more information about domestic chip production, and also learned the opinion of the tech business about this initiative
On the topic
«Usually, states subsidize such projects by about 30%.» dev.ua received more information about domestic chip production, and also learned the opinion of the tech business about this initiative
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Read the country’s main IT news in our Telegram
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